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The corporate response to politics is a partisan issue. That's bad news for CEOs – CNBC

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Activists listen as Senate Democrats speak during a news conference demanding action on gun control legislation after a gunman killed 19 children and two teachers in a Texas elementary school this week, on Capitol Hill on Thursday, May 26, 2022 in Washington, DC.
Jabin Botsford | The Washington Post | Getty Images

The fury over how to respond to yet another mass shooting in the United States reveals an uncomfortable reality for the country’s corporate leaders: in many cases, it’s no longer possible to avoid getting involved in public political debate. The pressure from customers and employees alike is too strong. 

In our latest CNBC|Momentive Workforce Survey, more than half of workers in the U.S. (56%) say they approve of business leaders speaking out about social and political issues, but there’s a big catch: far fewer (32%) say they would back their own company’s leadership regardless of what they were advocating. 

Women are more likely than men, younger workers are more likely than older workers, and — most dramatically — Blacks, Asians, and Hispanics are more likely than whites to say they approve of business leaders who speak up. But partisan differences trump all the above demographic disparities: 71% of Democrats say they would approve of business leaders who speak out on political issues, compared with just 45% of Republicans. 

Those partisan differences are key because they’re exactly the reason why business leaders often avoid speaking about politics altogether. With such strong partisan divisions on any issue, taking a side can have drastic consequences. If they do choose to speak out, business leaders risk driving away workers who disagree with them politically. In fact, if employees see their bosses expressing political views that are not consistent with their own, a significant number would walk away from their jobs. 

Workers will quit if they disagree with company politics

Four in 10 workers (40%) say they would be very or somewhat likely to quit a job if their organization took a stand on a political issue that they do not agree with. Some of the same workers who are most eager to see corporate leaders speak out are also the most likely to leave. Almost half (48%) of young workers ages 18-24 say they would be likely to quit if they disagree with a political stance taken by leaders at their company. 

Similarly, even though Democrats (much more than Republicans) are the ones pushing for business leaders to jump into the political fray, they’re also quicker to say they would quit their job if their company takes a stand on a political issue they don’t like. 

For C-suite leaders, the risk can be greater than the reward inside the realm of politics. Executives who work so hard to gain the trust of their employees can quickly squander all of that hard-earned respect. 

But politics might not be as problematic for most workers as these topline numbers make it appear. Evidence from this survey indicates that workers may self-select into working at companies whose leaders espouse the same political beliefs as their own. 

Most workers report feeling very aligned with their current employers politically: 66% say they consider their company’s position on political issues to be “about right,” while the rest are split between those who think their employer is “too liberal” (14%) and “too conservative” (14%). 

Whether they actually follow through on quitting or whether that’s just an empty threat, it’s clear the balance of power in the job market is currently tipping toward workers, and management is wary of doing anything that risks upsetting their workforce. But what makes this even trickier is that the conversation is constantly shifting, giving business leaders ample opportunities to stray from the recommended course of action. 

From race to gender, no shortage of controversy

This latest round of the Workforce Survey was fielded May 10-16 among more than 9,000 workers nationwide, and the political discourse at the time was dominated by news of the leak of a Supreme Court decision that would overturn Roe v. Wade. Yet just a week later, the national conversation has already moved on – albeit temporarily – to focus on gun control, after several horrific shootings at a grocery store in Buffalo, New York, a church in Laguna Woods, California, and an elementary school in Uvalde, Texas. 

As the political focus shifts, we can expect the support for business leaders who speak out to shift as well. Every political issue has a different level of relevance for different individuals; some may care more about issues related to reproductive health and gender, while others may be more motivated by racial justice, gun control, or any other social issue. 

In fact, we’re already seeing evidence for the effect of issue salience in these survey results, which are all slightly muted compared with the responses to the same survey questions one year ago. In April of last year, 60% of workers in the U.S. said they approved of business leaders speaking out on social and political issues, four points higher than today. 

Last year’s poll was conducted amidst a wave of news events — including heightened anti-Asian discrimination, voting disenfranchisement in Georgia, and the trial of Derek Chauvin — that prompted business leaders to wade into politics in a very visible way. Over the past 12 months, support for leaders who speak out on politics decreased consistently across all demographic groups and partisan affiliations. As the political winds continue to shift, workers’ pressure on executives to speak out or stay silent will shift as well. 

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Politics

A look at Susan Holt, Liberal premier-designate of New Brunswick

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FREDERICTON – A look at Susan Holt, premier-designate and leader of the New Brunswick Liberal party.

Born: April 22, 1977.

Early years: Raised in Fredericton, she attended Queen’s University in Kingston, Ont., and then spent a year in Toronto before moving abroad for three years, spending time in Australia and India.

Education: Earned a bachelor of arts in economics and a bachelor of science in chemistry from Queen’s University.

Family: Lives in Fredericton with her husband, Jon Holt, and three young daughters.

Hobbies: Running, visiting the farmers market in Fredericton with her family every Saturday.

Before politics: CEO of the Fredericton Chamber of Commerce, CEO of the New Brunswick Business Council, civil servant, business lobbyist, advocate, consultant and executive with an IT service company that trains and employs Indigenous people.

Politics: Worked as an adviser to former Liberal premier Brian Gallant. Won the leadership of the provincial Liberal party in August 2022 and was elected to the legislature in an April 2023 byelection.

Quote: “We don’t take it lightly that you have put your trust in myself and my team, and you have hope for a brighter future. But that hope I know is short-lived and it will be on us to deliver authentically, on the ground, and openly and transparently.” — Susan Holt, in her speech to supporters in Fredericton after the Liberals won a majority government on Oct. 21, 2024.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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New Brunswick Liberals win majority, Susan Holt first woman to lead province

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FREDERICTON – New Brunswick voters have elected a Liberal majority government, tossing out the incumbent Progressive Conservatives after six years in power and handing the reins to the first woman ever to lead the province.

Liberal Leader Susan Holt is a relative newcomer to the province’s political scene, having won a byelection last year, eight months after she became the first woman to win the leadership of the party.

The Liberals appeared poised to take 31 of 49 seats to the Conservatives’ 16 and the Greens two.

Holt, 47, led the Liberals to victory after a 33-day campaign, thwarting Blaine Higgs’s bid to secure a third term as Tory premier.

The Liberal win marks a strong repudiation of Higgs’s pronounced shift to more socially conservative policies.

Higgs, meanwhile, lost in his riding of Quispamsis. In a speech to supporters in the riding, he confirmed that he would begin a leadership transition process.

As the Liberals secured their majority, Green Party Leader David Coon thanked his supporters and pledged to continue building the party, but he then turned his sights on the premier. “One thing is for sure,” he told a crowd gathered at Dolan’s Pub in Fredericton, “we know that Blaine Higgs is no longer the premier of this province.”

The election race was largely focused on health care and affordability but was notable for the remarkably dissimilar campaign styles of Holt and Higgs. Holt repeatedly promised to bring a balanced approach to governing, pledging a sharp contrast to Higgs’s “one-man show taking New Brunswick to the far right.”

“We need a government that acts as a partner and not as a dictator from one office in Fredericton,” she said in a recent interview with The Canadian Press.

Higgs focused on the high cost of living, promising to lower the provincial harmonized sales tax by two percentage points to 13 per cent — a pledge that will cost the province about $450 million annually.

Holt spent much of the campaign rolling out proposed fixes for a health-care system racked by a doctor shortage, overcrowded emergency rooms and long wait-times. A former business advocate and public servant, she promised to open 30 community health clinics across the province by 2028; remove the provincial sales tax from electricity bills; overhaul mental health services; and impose a three per cent cap on rent increases by 2025.

The 70-year-old Tory leader, a mechanical engineer and former Irving Oil executive, led a low-key campaign, during which he didn’t have any scheduled public events on at least 10 days — and was absent from the second leaders debate on Oct. 9.

Holt missed only two days of campaigning and submitted a 30-page platform with 100 promises, a far heftier document than the Tories’ two-page platform that includes 11 pledges.

When the election was called on Sept. 19, the Conservatives held 25 seats in the 49-seat legislature. The Liberals held 16 seats, the Green Party had three, there was one Independent and four vacancies. At least 25 seats are needed for a majority.

Higgs was hoping to become the first New Brunswick premier to win three consecutive elections since Liberal Frank McKenna won his third straight majority in 1995. But it was clear from the start that Higgs would have to overcome some big obstacles.

On the first day of the campaign, a national survey showed he had the lowest approval rating of any premier in the country. That same morning, Higgs openly mused about how he was perceived by the public, suggesting people had the wrong idea about who he really is.

“I really wish that people could know me outside of politics,” he said, adding that a sunnier disposition might increase his popularity. “I don’t know whether I’ve got to do comedy hour or I’ve got to smile more.”

Still, Higgs had plenty to boast about, including six consecutive balanced budgets, a significant reduction in the province’s debt, income tax cuts and a booming population.

Higgs’s party was elected to govern in 2018, when the Tories formed the province’s first minority government in almost 100 years. In 2020, he called a snap election — marking the first province to go to the polls during the COVID-19 pandemic — and won a slim majority.

Since then, 14 Tory caucus members have stepped down after clashing with the premier, some of them citing what they described as an authoritarian leadership style and a focus on conservative policies that represented a hard shift to the right.

A caucus revolt erupted last year after Higgs announced changes to the gender identity policy in schools. When several Tory lawmakers voted for an external review of the change, Higgs dropped dissenters from cabinet. A bid by some party members to trigger a leadership review went nowhere.

Higgs has also said a Tory government would reject all new applications for supervised drug-consumption sites, renew a legal challenge against the federal carbon pricing scheme and force people into drug treatment if authorities deem they “pose a threat to themselves or others.”

This report by The Canadian Press was first published Oct. 21, 2024.

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National revenue minister to leave federal politics, run for Sherbrooke mayor

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SHERBROOKE, Que. – National Revenue Minister Marie-Claude Bibeau will run for mayor of Sherbrooke, Que., in the municipal elections slated for next fall.

The Liberal MP for the Quebec riding of Compton-Stanstead confirmed Monday morning that she will complete her current term in Ottawa, but will not seek re-election.

Bibeau, who has been national revenue minister since July 2023, was first elected in 2015 and has since spent time as minister of agriculture, international development and la Francophonie.

Bibeau said her campaign has not officially begun and she will continue to focus on her work as an MP, but she plans to run as an independent candidate to replace outgoing Mayor Évelyne Beaudin, who has already confirmed she will not seek re-election.

Quebec’s municipal elections are scheduled for Nov. 2, 2025, while the next federal election must take place no later than Oct. 20, though the minority Liberal government could fall before then.

Prime Minister Justin Trudeau is expected to shuffle his cabinet soon to replace Bibeau and three other ministers who have informed him they don’t plan to run in the next election.

Bibeau’s spouse, Bernard Sévigny, was mayor of Sherbrooke from 2009 to 2017.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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